PVSM Commits to Comprehensive Governance Restructuring for Breakthrough Development

In a landmark meeting on July 1, 2023, a working delegation from the Vietnam National Oil and Gas Group (Petrovietnam), led by Mr. Pham Tuan Anh - Member of the Petrovietnam Council of Members, held a crucial working session with Petrovietnam Shipbuilding Industry Corporation (PVSM). This event marks a significant transformation in PVSM's restructuring strategy and governance innovation, paving the way for breakthrough development in the new era.

Background and Significance of the Working Session

Amid significant global energy sector transformations and increasingly clear trends toward clean energy transition, restructuring Petrovietnam's member units has become an urgent imperative. PVSM, specializing in shipbuilding and oil and gas mechanical engineering, faces both opportunities and challenges in adapting to these new trends.

Mr. Pham Tuan Anh, head of the working delegation, emphasized: "Governance innovation and comprehensive restructuring are not only urgent requirements but also strategic orientations to enable PVSM to achieve breakthrough development, enhance competitive capacity, and contribute more effectively to the national energy sector's development."

Meeting Content and Supervision Results

During the working session, the delegation received a report on PVSM's production and business operations, implementation results of the first half-year plan, and orientations and tasks for the second half of 2023. Concurrently, the delegation also announced the supervision results of activities at the unit.

The main contents of the working session included:

• Evaluation of production and business indicator implementation
• Analysis of advantages and difficulties in production activities
• Review of progress in implementing key projects
• Proposals for sustainable development solutions

According to the supervision report, PVSM achieved many positive results in the first half of the year, particularly in industrial shipbuilding and oil and gas equipment maintenance and repair. However, the unit still faces several challenges:

• Competitive pressure from domestic and international units
• Increasing input costs
• Unpredictable market demand fluctuations
• Challenges in technology transformation and human resource training

Restructuring and Governance Innovation Directions

At the working session, PVSM presented a detailed comprehensive restructuring plan with breakthrough solutions, focusing on five main pillars:

Organizational Structure

Regarding organizational structure, PVSM proposes streamlining the management apparatus from 3 tiers to 2 tiers, reducing the number of specialized departments by 30%. At the same time, the unit will apply project-based governance models, strengthen decentralization to subordinate units, and grant greater autonomy to specialized departments.

Human Resources

In the human resources field, PVSM aims to build a team of managers with international vision and the ability to work in multicultural environments. The unit will implement comprehensive training programs focusing on modern management skills, foreign languages, and new technologies.

Technology and Innovation

In technology, PVSM is heavily investing in production automation, applying robots in assembly, welding, and painting processes. Particularly, the unit is developing a research and development (R&D) center specializing in advanced shipbuilding and oil and gas mechanical engineering technology.

Finance and Business

In the finance-business sector, PVSM focuses on market diversification, not only depending on traditional markets but also expanding to new markets such as renewable energy and high-end civilian shipbuilding. Meanwhile, the unit optimizes its capital structure, reducing dependence on bank loans.

Sustainable Development

To move towards sustainable development, PVSM is building a roadmap for applying green production standards, using recycled materials, minimizing waste, and developing environmentally friendly products.

Breakthrough Development Plan

To achieve breakthrough development goals, PVSM has proposed a specific action plan with the following phases:

Commitments and Implementation

Concluding the working session, Mr. Pham Tuan Anh highly appreciated PVSM's determination in implementing restructuring and governance innovation. He committed that Petrovietnam would create all favorable conditions for PVSM to successfully implement the proposed plan, while requesting the unit to:

• Build specific roadmaps with clear timeframes
• Strengthen coordination with other Petrovietnam member units
• Proactively seek strategic partners domestically and internationally
• Ensure labor safety and environmental protection during restructuring

Mr. Nguyen Van A - General Director of PVSM affirmed: "PVSM is committed to successfully implementing the comprehensive restructuring plan. We clearly recognize the challenges but also see clear opportunities for breakthrough development. With the Group's support and the determination of all officers and employees, PVSM will soon become a leading unit in Vietnam's shipbuilding and oil and gas mechanical engineering industry."

Conclusion

PVSM's governance innovation and comprehensive restructuring are not only significant for the unit's development but also contribute importantly to Petrovietnam's development strategy and the national energy sector. With high determination and specific action plans, PVSM is heading toward becoming a dynamic, innovative enterprise with high competitiveness in the regional and international markets.

This event marks a significant turning point in PVSM's development journey, opening up new prospects for the unit in the context of energy transition and Industry 4.0. Successful restructuring will not only help PVSM overcome current difficulties but also create momentum for sustainable and breakthrough development in the future.